The Impact Of Different Weighting Methods On My Dividend Portfolio

For over 20 years, I equated yield with price appreciation and never rebalanced my portfolio. To reduce risk, I always kept a "balance on cost" to limit the invested money per stock. In 2015, I added dividends as a new parameter to stock selection. The idea was to shift income from our family business to alternative income streams in advance of retirement in 2022. Since May 2015 I bought stocks and closed end funds to obtain an overall yield of about 4%. After the first year I caught myself considering to sell or rebalance some positions.
Table 1 lists my dividend payers. Current yield, capital and income weight are shown with respect to prices and dividends in USD in June, 2016. The overall yield of the portfolio is 4.2% (orange). For all tables, percents are rounded for legibility and do not exactly add up to 100%.

The capital weights result from changes in price over the year and my style of position sizing. The standard amount, that I invest or speculate in one stock compares to an average monthly family income. In some cases I allocated only a "half month", f.i. in unknown terrain like bonds or mining. In case of Apple (Nasdaq: AAPL), I invested "two months" based on confidence and emotion. I have been using Apple products for 24 years now, and sometimes hated myself for doing so: In 1992, I bought a Powerbook 170 instead of AAPL. Additionally, I round the number of shares to multiples or quarters of 100. In the following, "half... Read more